Goldman Sachs Assumes Oil Prices Pick Up In Fourth Quarter 2026

Dec 18 (Reuters) - GOLDMAN SACHS:

• ASSUMES OIL PRICES PICK UP IN 2026Q4 AS THE MARKET STARTS PRICING A RETURN TO A DEFICIT IN 2027H2 AND SHIFTS FOCUS TO INCENTIVIZING LONG-CYCLE PRODUCTION

• GOLDMAN SACHS FORECASTS BRENT/WTI PRICES TO GRADUALLY RECOVER TO $80/$76/BBL BY LATE 2028

• GOLDMAN SACHS FORECASTS 2026/27 TTF GAS PRICES AT 29/20 EUR/MWH ($10/$6.85/MMBTU)

• GOLDMAN SACHS EXPECTS 2026/27 US GAS PRICES TO INCENTIVIZE US GAS PRODUCTION GROWTH AT $4.60/$3.80/MMBTU

• GOLDMAN SACHS SAYS WITH THE TTF FORWARD CURVE NOT YET FULLY PRICING THIS BEARISH LNG CYCLE, THEY CONTINUE TO RECOMMEND THEIR GLOBAL GAS GLUT TRADE (SHORT 3Q27 TTF)

• GOLDMAN SACHS EXPECTS US POWER SPARE CAPACITY TO DECLINE FURTHER AS RAPID POWER DEMAND GROWTH AND COAL RETIREMENTS OUTWEIGH RENEWABLE AND NATURAL GAS POWER BUILDS